Langley businesses exporting to the US should review their product exposure following the announcement of potential new 50% US tariffs on a range of Canadian goods.

The new tariffs are scheduled to take effect on August 19 and apply to certain Canadian products connected to three separate US trade actions concerning dairy, alcoholic beverages, and motor vehicles. These tariffs are additional duties, meaning they stack on top of any tariffs, fees, or charges that already apply. 

Importantly, these Section 338 tariffs will apparently apply to all impacted goods regardless of whether a good qualifies under the U.S.-Mexico-Canada Agreement (CUSMA).

For businesses, the most important message is this: do not assume you are unaffected based on the title of the tariff action.  For example, while one proclamation relates to motor vehicles, the covered product list appears to extend well beyond cars to include broad range of Canadian goods across sectors such as agriculture, wood and paper products, textiles, furniture, electronics, building materials, machinery, and more. 

What is impacted:

Businesses should consult the full lists of included goods, and the related HS Codes, to confirm if their products are included:
List 1  - largest list of various items >
List 2  - mainly dairy and dairy items >
List 3  - alcohol, paper/packing, hockey equipment >

Impacted items include:

• Dairy: milk and cream powders, whey products, milk protein concentrates, casein, lactose, and other dairy-derived ingredients (broader than just cheese — covers bulk dairy ingredients used in food manufacturing, baking, and beverages)
• Alcohol: beer, wine (still and sparkling), cider, vermouth, and virtually all spirits (whiskey, vodka, rum, gin, tequila, brandy)
• Wood products: densified wood, wooden tableware and kitchenware, wood marquetry/inlay and furniture ornaments, bamboo skewers and drink-mixing sticks, bamboo fencing, basketwork/wickerwork items, and kraft, greaseproof, and coated paper
• Agriculture & horticulture: honey, cut flowers, bulbs, seeds, hops, mint
• Hides, furs, and animal products: raw hides and skins, furskins, feathers/down, gelatin
• Chemicals & essential oils: citrus, mint, and eucalyptus oils; perfumes; industrial fatty acids
• Wood & paper products: plywood, particleboard, MDF, wood doors and frames, various paper and paperboard grades, envelopes, cartons
• Textiles & apparel: yarn and fabric, sweaters, dresses, jackets, track suits, gloves, curtains, tarps
• Cement and building materials: Portland cement, plaster and concrete articles
• Electronics & machinery: smartphones, semiconductors, TV cameras, radar equipment, monitors, packaging/bottling and brewery machinery, refrigeration equipment
• Furniture & lighting: metal and wood furniture, seating, LED light fixtures
• Sporting goods & toys: golf equipment, ice skates, swimming pools, fishing rods, video game consoles, toys, Christmas ornaments
• Jewelry, art & collectibles: silver and gold jewelry, paintings, sculptures, antiques, stamp and coin collections
• Vessels & motorcycles: boats, floating docks, motorcycles over 800cc

What this means for business

These tariffs represent another significant escalation in Canada-US trade uncertainty.

For exporters, they could mean higher costs, reduced competitiveness in the US market, disrupted contracts, delayed orders, or pressure from US customers to absorb part of the added cost. For businesses that do not export directly, the impact may still be felt through suppliers, customers, input costs, or broader uncertainty in North American supply chains.

This is especially concerning for communities like Langley, where businesses are connected to the US market through manufacturing, agriculture, food processing, transportation, logistics, construction materials, professional services, and industrial supply chains.

The Chamber continues to oppose measures that undermine stable, rules-based trade between Canada and the US. Tariffs increase costs for businesses and consumers on both sides of the border, create uncertainty for investment, and make it harder for companies to plan, hire, and grow.  We are engaging with government and the Canadian Chamber on this file regularly.

What businesses should do now

Businesses that export to the US should review their products against the relevant tariff lists and confirm the applicable HS or HTS codes with a customs broker or trade advisor.
Companies should also:

• Confirm whether any products are covered by the new tariff lists
• Review existing contracts for tariff, pricing, currency, and change-of-law provisions
• Speak with US customers about potential pricing or delivery impacts
• Identify exposure through suppliers or inputs
• Document increased costs, delayed sales, cancelled orders, or lost opportunities
• Continue using CUSMA where applicable, while recognizing these tariffs may apply even to covered goods that otherwise qualify under the agreement

Businesses should not make major supply-chain decisions based on headlines alone. The product lists are technical, and the impacts will depend on specific classifications, customers, contracts, and supply-chain relationships.

At the same time, this is another reminder of the importance of deepening trade relationships beyond the US, including within Canada and in other international markets. The US will remain Canada’s most important trading partner, but businesses need more options, more certainty, and stronger support to compete globally.

The Chamber’s role

The Greater Langley Chamber of Commerce will continue monitoring these developments and raising business concerns with government and our Chamber network partners.

We encourage affected members to contact the Chamber if these tariffs may affect their exports, customers, costs, or investment plans. Real examples from businesses are important as we advocate for a more stable and competitive trade environment.

Members with specific tariff questions should speak directly with a customs broker, trade lawyer, or qualified trade advisor to confirm how the new measures apply to their products.